Budgeting is a skill. Although online loans with fast approval are convenient and, in some cases, can become a helping hand, it’s better to plan one’s budget.
Filipinos are known for their warmth and tight-knit communities. But how about building a strong bond with something a little less cuddly: your money? In this country, where a strong sense of family extends to financial well-being, taking control of your finances isn’t just about numbers – it’s about building a secure future for yourself and those you love. Let’s explore some practical tips to transform your relationship with money from a stressful one to a supportive and empowering friendship.
Don’t Loan Your Money to Others
Lending money to friends and family can be tricky. Often, these situations turn messy and hurt both your wallet and your relationships. Here’s how to be a friend to yourself and your money:
Consider it a Gift, Not a Loan
Instead of lending a big sum you might never see again, offer a smaller amount you’d be okay with not getting back. Chasing repayments can damage friendships, so be prepared to let it go.
Ask Questions Before You Lend
Understand why they need the money. Is it a real emergency, or a non-essential expense? Once, someone asked me to borrow a new phone – their current one worked perfectly fine! Easy “no” there.
Don’t Hurt Your Finances to Help Theirs
A friend might need a loan to avoid condo penalties on an investment property. Helping them means hurting your investments if they aren’t willing to cover any losses or offer interest. True friendship considers both sides.
Get a Clear Repayment Plan
Vague promises of “soon” or “next week” are red flags. Someone who truly needs a loan will have a clear repayment plan, ideally with a post-dated check as a guarantee.
Remember, a firm “no” protects your finances and friendships. True friends will understand, and value your honesty. If you have no other option, you can refer your lenders to get loans online loans with fast approval for their financing needs instead of hurting your relationships.
Avoid the Credit Card If Possible and Befriend Your Cash
Credit cards can be tempting. They let you buy anything you want whenever you want. However, that convenience comes at a steep price. Credit card interest rates are super high, so if you only pay the minimum amount due, you’ll be stuck in debt forever.
Even if you never miss a payment, there’s a hidden danger. Paying mostly the minimum keeps you in debt and the credit card company is happy – they make more money that way.
You can break from such an unhealthy cycle easily. Stop using your credit card and start paying in cash. It might seem unbearable to see your money go, but it will make you think twice before spending. Plus, with cash, when it’s gone, you can’t spend anymore – a handy limit!
For existing debt, be proactive. Call your credit card company and explain your situation. Let them know you’ve been overspending and can’t afford the minimum payments. They might offer a lower interest rate or a payment plan to help you get back on track.
Don’t Let Hunger Empty Your Wallet
Have you ever noticed that you buy more junk food at the grocery store when your stomach’s rumbling? It’s not just you! Studies show shopping hungry leads to impulse buys you’ll later regret. The same goes for online browsing – tempting deals look even more delicious on an empty stomach. So, grab a bite before hitting the shops, online or off.
Being prepared goes beyond your stomach. Don’t get fooled by super-low fares advertised by budget airlines. Those prices often balloon once you add seat selection, baggage fees, and meals. Take a few minutes to compare prices across different airlines before you book. You might be surprised by better deals, hidden discounts, or even freebies with your purchase – all for the price of a little research.
Times are tough with many Filipinos facing unemployment, limited work hours, high loan interest, and rising costs. But that’s all the more reason to be smart with your money. Mikka Montero encourages: “Let’s avoid unhealthy spending habits and start making wise financial choices, this April and beyond”!
Building an Emergency Fund
Imagine your money is a trusted barkada (close friend) in the Philippines. Just like a barkada helps you through tough times, an emergency fund is there to catch you financially if unexpected things happen. It’s a pot of savings you can easily access, ideally covering 3-6 months of living expenses. Having this safety net gives you peace of mind. Instead of scrambling for loans with high-interest rates during an emergency, you can rely on your savings to cover car repairs, medical bills, or even a temporary loss of income. It’s like having a supportive friend who helps you get back on your feet without getting stuck in debt. Useful blog on personal finance is available on Allthebestloans.com.
Investing in Your Future
Saving is a solid first step, but to truly build a secure future, your money needs to work for you! Picture it as an awesome teammate helping you reach your goals. There are different ways to make this happen, like investing in companies (stocks) or getting loans from them (bonds) that pay you back with interest. You can even invest in real estates, like buying a property. If you feel overwhelmed by the options you can hire a financial advisor; your money coach, to guide you towards choices that fit your dreams, how comfortable you are with risk, and when you’ll need the money.
Continuously Educating Yourself
Just like a good friendship gets stronger over time, the more you learn about money, the better. Free resources like books, podcasts, and workshops can teach you new things. The more you know about handling money, the better choices you can make to reach your savings goals.
Brief summary
Making friends with your money is a journey that requires patience, commitment, and ongoing effort. By following the tips discussed above, you can cultivate a healthy relationship with your finances. Remember, just like any friendship, your relationship with money requires nurturing, communication, and a willingness to grow and adapt over time. Start taking steps today to build a brighter financial future for yourself and those you care about.
